The Runner Company produces rubber seals used in the aerospace industry. Standards call for 3 pounds of material at $2.48 per pound for each seal. The standard cost for labor is 1.5 hours at $15.00 per hour. Standard overhead is $10.00 per unit. For the year 2018, expected production is 134,000 seals with fixed overhead of $134,000 and variable overhead of $9.00 per seal. During 2018, a total of 125,000 seals were produced. The company purchased 455,000 pounds of material for $1,146,600. Production required 444,100 pounds of material. The cost of direct labor incurred was $2,900,000 with an actual average wage rate of $15.25 per hour. Actual overhead for the year was $880,000.

Standard Cost per seal?

Material Price Variance? Favorable or Unfavorable?

Material Quantity Variance? Favorable or Unfavorable?

Labor Rate Variance? Favorable or Unfavorable?

Labor Efficiency Variance? Favorable or Unfavorable?

Controllable Overhead Variance? Favorable or Unfavorable?

Overhead Volume Variance? Favorable or Unfavorable?

Prepare a variance summary. (Enter unfavorable variances using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Material Price Variance Material Quantity Variance Labor Rate Variance Labor Efciency Variance Controllable Overhead Variance Overhead Volume Variance Total Indicate which variances should be investigated. Material Price Variance Material Quantity Variance Labor Rate Variance Labor Efciency Variance Controllable Overhead Variance 888888 Overhead Volume Variance